Product differentiation is the process of making a product or service different from others to increase the attractiveness of the product in a certain market. It focuses on Unique Selling Proposition (USP) that helps to distinguish the products from the competitors and gain competitive advantage (Kotler & Keller, 2016). Product differentiation aims of creating distinct image of the product in the mind of customers by offering something than that of the competitors.
The product can be differentiated in various ways. The quality, product design, pricing, product aesthetics, packaging, customer service, technology and innovation, user experience and product form can be used as basis for product differentiation. In addition to these, product differentiated by origin, branding, adding on feature or ingredient, offering a bonus, highlighting a certain feature or exposing the weaknesses of competitors (Sales Backer).
Some of the Nepali products and the ways they have attempted to differentiate their products are:
Goldstar shoes: Goldstar shoes is a brand known for quality, durability and affordability. Recently, it has been incorporating the style element too in order to make the product suitable for providing variety (Puri, 2017). The pride of wearing the product made in home has helped in increasing the customer base of this brand. Thus Goldstar is using the price, quality and origin to differentiate its products.
eSewa: eSewa is focused on establishing electronic payment system. Though a lot of financial institutions have also integrated electronic banking, people prefer eSewa because of its goodwill. The easy to use interface and the ease of making utility payment from the place of our comfort has made eSewa the first choice of many people for making payment. The innovation and technology is used by this company for differentiation.
Tootle/Sarathi: Tootle and Sarathi have incorporated the technology to help people book a ride on the two wheeler or four wheeler respectively. The fair charge and ease to book has made it a choice of lot of people over public transportation. The struggle to get public vehicles and reach the desired destination on time has been addressed by the entrepreneurs starting these services.
Phalano Luga: This brand is differentiating itself as a company that sells t-shirts made in Nepal with creative designs.
In addition to these, Latido, Nepal Ice are some of the companies that are successful in differentiating their products from the competitors and create a unique image of their products in the market. The strategies used by these companies has helped in increasing the sales volume by gaining competitive advantage.
References
Kotler, P., & Keller, K. L. (2016). Marketing Management. London: Pearson.
Puri, M. (2017, October 9). How Goldstar has set a benchmark in the footwear industry that other brands strive to meet. MnS Vmag . Retrieved from mnsvmag.com/news/2017-10-09/goldst...
Product differentiation is the process of making a product or service different from others to increase the attractiveness of the product in a certain market. It focuses on Unique Selling Proposition (USP) that helps to distinguish the products from the competitors and gain competitive advantage (Kotler & Keller, 2016). Product differentiation aims of creating distinct image of the product in the mind of customers by offering something than that of the competitors.
The product can be differentiated in various ways. The quality, product design, pricing, product aesthetics, packaging, customer service, technology and innovation, user experience and product form can be used as basis for product differentiation. In addition to these, product differentiated by origin, branding, adding on feature or ingredient, offering a bonus, highlighting a certain feature or exposing the weaknesses of competitors (Sales Backer).
Some of the Nepali products and the ways they have attempted to differentiate their products are:
Goldstar shoes: Goldstar shoes is a brand known for quality, durability and affordability. Recently, it has been incorporating the style element too in order to make the product suitable for providing variety (Puri, 2017). The pride of wearing the product made in home has helped in increasing the customer base of this brand. Thus Goldstar is using the price, quality and origin to differentiate its products.
eSewa: eSewa is focused on establishing electronic payment system. Though a lot of financial institutions have also integrated electronic banking, people prefer eSewa because of its goodwill. The easy to use interface and the ease of making utility payment from the place of our comfort has made eSewa the first choice of many people for making payment. The innovation and technology is used by this company for differentiation.
Tootle/Sarathi: Tootle and Sarathi have incorporated the technology to help people book a ride on the two wheeler or four wheeler respectively. The fair charge and ease to book has made it a choice of lot of people over public transportation. The struggle to get public vehicles and reach the desired destination on time has been addressed by the entrepreneurs starting these services.
Phalano Luga: This brand is differentiating itself as a company that sells t-shirts made in Nepal with creative designs.
In addition to these, Latido, Nepal Ice are some of the companies that are successful in differentiating their products from the competitors and create a unique image of their products in the market. The strategies used by these companies has helped in increasing the sales volume by gaining competitive advantage.
References
Kotler, P., & Keller, K. L. (2016). Marketing Management. London: Pearson.
Puri, M. (2017, October 9). How Goldstar has set a benchmark in the footwear industry that other brands strive to meet. MnS Vmag . Retrieved from mnsvmag.com/news/2017-10-09/goldst...
Sales Backer. (n.d.). 8 Ways to Differentiate Your Product from Your Competitors. Retrieved from Salesbacker: salesbacker.com/blog/58/8_Ways_to_...